During the last 6 months significant additional details on the subsurface of the
- Detailed interpretation of the ZTEM geophysical survey revealed
that the anomaly is much larger than previously realized. Based on the
analysis of all the data, it is now realized that it could contain the
footprint of any of the largest porphyry copper deposits known in
North America. Additional geophysical interpretive work on the abundant geophysical data was clearly warranted.
- The electromagnetic component of the ZTEM system shows
conductors going to a depth of at least 1,520m (approx. 5,000 feet),
which would be commensurate with the base of the Paleozoic sediments
and their depositional contact with the Precambrian basement rocks.
This is similar to the mineralization at
Bisbee, Christmas, Twin Buttes, Rosemont and Morenci, Arizonaand Cananea, Mexico, all within about 161 km (100 miles) of Hay Mountain, and all are sediment (skarn) hosted porphyry copper mines.
- The detailed magnetic component of the ZTEMsurvey allows
the three dimensional analysis of the very large magnetic feature
which is coincident with the geochemical porphyry copper signature and
low resistivity signatures from the electromagnetic (EM) component.
This magnetic resonance imaging (MRI – just like physicians use –
except in our case it is helicopter borne, not stationary in an office
– and of course the scale is different), reveals important details of
what is comparable to known mineral bearing skarn in other districts
North and South America, and throughout the world. Skarn (altered limestone – see Liberty Star’s glossary on web site) frequently contains high grade copper, gold, molybdenum, tungsten and other metals. This is a common host for the nearby Bisbeemines where early day production ranged from 7% to 30% copper. Other deposits within about 241 km (150 miles) at Morenci, Silver Bell, Mission, Twin Buttes, Rosemont, Globe and Christmas, Arizona, Chino, New Mexicoand Cananea, Mexicoand others as well as mines in other parts of the world have similar grades in skarn bodies.
- The 3D magnetic data suggest the upper part of the skarn bodies
lie 30 to 90 meters (approx. 100 to 300 feet) below dirt cover. Their
magnetic signature suggests the upper 30 to 90 meters or more is
oxidized and copper would be in oxide form that would allow shallow
open pit mining, heap leaching solvent extraction and electrowinning
(OPHLSXEW) to produce 99.99% wire grade copper as seen at the new
Safford, Arizonamine and others. It might also be like the nearby Bisbeedeposit which produced an astounding number of museum quality green copper oxide and other mineral specimens of great value.
- Analysis of the data generated in the studies identified above has made it possible to lay out a targeted drill program. Recent consultation with directional drilling contractors suggests that a significant reduction of the number of drill sites can be made. This will minimize surface disruption and allow the drilling of one mother hole and up to 8 daughter holes from one drill site. This should significantly reduce the cost of drilling, as the directional daughter holes will save penetrating repeatedly to the daughter hole kick off depth. This directional drilling is similar to oil field standard procedure.
- The availability of new equipment. Largely dependent on new high speed microcomputers, combined with the Internet suggest a more efficient approach to the rapid drilling this project will require.
- Development time and financing availability
Briscoe has been told by well-capitalized investors during his world travels over the last 11 months that no more than seven years is an acceptable time for exploration and start of production. In response, the Company has designed a drilling exploration program to operate 24/7/365 for four years assuming ore grade material is intercepted. A mine would go into production in the seventh year. If a near surface oxide copper ore body is present (like the nearby
Johnson Camp Mineand I-10Porphyry-Excelsior proposed mines), as suggested by the geophysics, such production on a moderate scale from a shallow pit could be feasible, thus greatly simplify this very tight schedule. Continued enlargement of facilities could consist of a build out of a large deep high grade underground mine or a much larger open pit mine or both; or perhaps a block cave operation.
Required capital funding for the
“James A. Briscoe”
Statements in this news release that are not historical are forward-looking statements. Forward-looking statements in this news release include: that a porphyry copper system is indicated; that Phase 1 drilling will cost US
Factors which may delay or prevent these forward-looking statements from being realized include misinterpretation of data; we may not be able to get equipment or labor as we need it; we may not be able to raise sufficient funds to complete our intended exploration or carry on operations; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company’s recent S-1, its 10-K and the Company’s other periodic reports filed from time to time with the
Agoracom Investor Relations